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Russia’s Gazprom Neft reports six-fold jump in second-quarter profit

Russia’s Gazprom Neft, the oil business of state gas company Gazprom, on Thursday reported a six-fold rise in second-quarter net profit to 133.1 billion roubles ($1.80 billion) following higher oil prices and sales.

Sales rose 19% to 726.8 billion roubles, from the previous quarter, it said.

Gazprom Neft’s shares in Moscow fell by 1.7% as of 0850 GMT. Russian stock indexes were falling, continuing their retreat from record highs on Wednesday.

Oil producers’ earnings have recovered as energy prices have been driven higher by rebounding demand after last year’s contraction caused by pandemic restrictions on movement.

However, oil output has been limited by a global pact with the Organization of the Petroleum Exporting Countries and allied producers including Russia.

The group, known as OPEC+, has been phasing out its output cuts as global oil demand recovers, but Russia has been struggling to crank up its production.

Gazprom Neft said on Thursday its oil output declined by 2% to 30.4 million tonnes in the first six months of the year mainly because of reduced production at its joint ventures.

The company has declined to comment on a possible reason for the production decrease.

Last year, the company, which used to be Russia’s fastest growing oil producer in terms of output, cut its oil production by 4%.
Source: Reuters (Reporting by Olesya Astakhova and Vladimir Soldatkin; editing by Jason Neely and Barbara Lewis)

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